The Foreign Investment Commission considered transactions in total for over US$ 2.5 billion

Andrey Tsyganov: the deal with “Verkhnechonskneftegaz” PJSC will bring US$1.1 billion to the national economy

On 7 April 2017, Deputy Head of FAS Andrey Tsyganov was the key speaker at the Government Commission on Control over Foreign Investments in the Russian Federation on preliminary approval of transactions regarding strategic Russian companies operating in the oil-and-gas sector and developing mineral deposits in federal-status mineral resources fields.

Transactions presented by FAS that received preliminary approvals of the Government Commission include: “Beijing GAS Group” of China acquiring 20% stock of “Verkhnechonskneftegaz” PJSC and a petition of “Otkrytie Promyshlennie Investitsii” Ltd. to acquire 100% shares of “Arkhangelsk Mining Enterprise” JSC that holds a licence for diamond mining in the Grib field.

“The deal with “Verkhnechonskneftegaz” PJSC will bring US$ 1.1 billion to the national economy, while the Russian Federation will keep control over the strategic company. As a result of the transaction with “Otkrytie Promyshlennie Investitsii” Ltd., over $1.4 billion investments will be brought into the economy”, said Andrey Tsyganov. “The Commission also considered other issues. It should be pointed out that the preliminary approvals of transactions that concern national defence and state security are not a burden for bona fide investors, which is confirmed by multi-year practice of the Commission and FAS Russia”.